The Colliers Canada National snapshots highlight economic and commercial real estate trends for the first quarter of 2015.
These snapshots provide insights on the office and industrial activity in the primary and secondary markets across Canada in relation to a number of economic trends that occurred in 2014 and are anticipated for 2015-2017.
- Canada’s six largest markets: Vancouver, Edmonton, Calgary, Toronto, Ottawa and Montreal
- Canada’s six secondary markets: Victoria, Saskatoon, Regina, Winnipeg, Waterloo and Halifax
- A slowdown in Canada’s economic growth driven largely by the sharp drop in oil prices, which will cost producers more than US$40 billion in lost revenues (CBOC). The oil-rich provinces of Alberta, Newfoundland and Labrador and Saskatchewan will experience near-term risk of lower than expected growth if oil prices drop further.
- The lower Canadian dollar will continue to drive growth in Canadian exports. Ontario and Quebec, in particular, will benefit from the lower Canadian dollar and rising U.S. demand given their large manufacturing sectors.
- Tourism activity across Canada is expected to pick-up throughout 2015. Because of the weakened Canadian dollar there will be an increase in international visitors and a decrease in Canadian cross-border shopping. Notably, British Columbia will largely be affected by this trend.
- The Bank of Canada has opted to keep its overnight lending rate at 0.75 percent amid economic slumps due to oil price declines. The bank is forecasting continued boosts to the Canadian economy driven by growing U.S. demand. Exports, investment and job opportunities in the non-energy sectors are forecast to increase this year.